Home Ownership Declining, Study Says

The percentage of Americans who own their homes fell in the 1980s, the first decade-long decline since the Great Depression, a study by the University of Southern California shows.

Based on 1990 U.S. Census information, home ownership fell from 64.4 percent in 1980 to 64.2 percent in 1990, said study author Dowell Myers, associate professor of planning and development at USC`s School of Urban and Regional Planning.

In California, the home-ownership level dropped from 55.9 percent to 55.6 percent.

Those in the 25 to 34 age range were hardest hit, with the ownership rate dropping 6.3 percent nationwide and 5.5 percent in California.

Nationwide, the ownership drop was the first since the 1930s, when ownership fell roughly 3 percent, Myers said.

Myers also found that home ownership for older Americans increased 5 percent nationwide and 11 percent in California.

Older Americans were able to build up their economic resources during the prosperity of the `50s and `60s, Myers said, while late Baby Boomers are being hindered in their savings efforts by market conditions, including high home prices and rents, and a sluggish economy.

In addition, the study found that home ownership tended to rise or remain stable in states where home prices were increasing.

Myers said that in California, where median home value increased 45.2 percent from 1980 to 1990, he would have expected a much greater drop in the ownership rate than the state`s 0.3 percent decline.

``When there`s prosperity in a region, people are more likely to buy homes, not only because they have jobs and rising incomes, but because they anticipate getting a good return on their housing investment,`` Myers said.